Michael Burry has been sounding the alarm on hype and speculation in markets for months, warning that the reckless promoting and buying will result in a devastating crash.
The Scion Asset Management chief is best known for his billion-dollar bet against the US housing bubble in the mid-2000s, which was immortalized in Michael Lewis’ book “The Big Short.” He was played by Christian Bale in the movie adaptation.
Here are Burry’s 17 best tweets, lightly edited and condensed for clarity:
1. “Markets have now bubbled over in a dangerous way.”
2. “People say I didn’t warn last time. I did, but no one listened. So I warn this time. And still, no one listens. But I will have proof I warned.”
3. “Fads today (#BTC, #EV, SAAS, #memestocks) are like housing in 2007 and fiber/.com/comm/routers in 1999. On the whole, not wrong, just driven by speculative fervor to insane heights from which the fall will be dramatic and painful.”
4. “Speculative stock #bubbles ultimately see the gamblers take on too much debt. #MarginDebt popularity accelerates at peaks. At this point the market is dancing on a knife’s edge. Passive investing’s IQ drain, and #stonksgoup hype, add to the danger.”
5. “So, @elonmusk, yes, I’m short $TSLA, but some free advice for a good guy….Seriously, issue 25-50% of your shares at the current ridiculous price. That’s not dilution. You’d be cementing permanence and untold optionality. If there are buyers, sell that #TeslaSouffle.”
6. “Well, my last Big Short got bigger and Bigger and BIGGER too….$TSLA $60 billion increase in market cap today alone…1 GM, 2 Hersheys, 3 Etsys, 4 Dominos, 10 Vornados…enjoy it while it lasts.”
7. “$BTC is a speculative bubble that poses more risk than opportunity despite most of the proponents being correct in their arguments for why it is relevant at this point in history. If you do not know how much leverage is involved in the run-up, you may not know enough to own it.”
8. “I don’t hate $BTC. However, in my view, the long-term future is tenuous for decentralized crypto in a world of legally violent, heartless centralized governments with #lifeblood interests in monopolies on currencies. In the short run anything is possible – why I am not short #BTC.”
9. “A doge’s breakfast maybe. We are in a blow-off top in all things.” – commenting on the hype around dogecoin.
10. “I went public when it was cheap, and I went public when it was time to get out. Same with anything else. Calling it as I see it, and sharing a bit. In 2005-6 it was not so easy to share.” – on investing in GameStop then exiting it.
11. “Hey, $GME is now a $stonk and may go $1000, but if I made a life-altering amount in this stock, I’d punch out. Main Street has Wall Street by the cojones. Great…